Income Taxes (Notes)
 12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Income Tax Disclosure
Income Taxes

The Company recorded a net income tax benefit of $2 thousand and $3 thousand for the years ended December 31, 2013 and 2012, respectively. The Company recorded a tax benefit on the loss from continuing operations of $2 thousand and $2.0 million for the years ended December 31, 2013 and 2012, respectively, which was offset by a provision on the income from discontinued operations of zero and $1.9 million for the years ended December 31, 2013 and 2012, respectively. The discontinued operations is associated with the sale of the Company's Semiconductor Business Unit and Medical Products Business Unit. See Note 18 to the consolidated financial statements. The loss generated from continuing operations for the year ended December 31, 2013, was offset by a taxable gain recognized on the sale of the Bio Business Unit to N2 Bio.  As mentioned in Note 19, since this transaction was a sale between entities under common control, no gain was recognized for financial reporting purposes.

The reconciliation between the amount computed by applying the United States federal statutory tax rate of 34% to pretax income (loss) and the actual benefit (provision) for income taxes follows:
(in thousands)
2013
 
2012
Income tax benefit (provision) – continuing operations at statutory rate
$
(2,872
)
 
$
2,289

Increase in valuation allowance related to income tax expense
161

 
(461
)
State income tax benefit
34

 
211

Taxable gain on sale between entities under common control
2,619

 
—

Other
60

 
(88
)
Income tax benefit – continuing operations
2

 
1,951

Income tax provision – discontinued operations at statutory rate
—

 
(1,656
)
State income taxes – discontinued operations
—

 
(292
)
Income tax provision – discontinued operations
—

 
(1,948
)
Total income tax benefit (provision)
$
2

 
$
3


 
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows:
(in thousands)
2013
 
2012
Deferred tax assets:
 
 
 
Accruals
$
1,997

 
$
1,992

Inventories
420

 
365

Other
477

 
—

Net operating loss carryforwards
4,733

 
4,705

General business credit carryforwards
388

 
403

Alternative minimum tax credit carryforwards
268

 
268

Foreign tax credit
—

 
38

Total gross deferred tax assets
8,283

 
7,771

 
 
 
 
Prepaid expenses
(294
)
 
(251
)
Depreciation
215

 
130

Amortization
(53
)
 
(79
)
Total gross deferred tax liabilities
(132
)
 
(200
)
 
 
 
 
Valuation allowance
(8,151
)
 
(7,571
)
 
 
 
 
Net deferred tax assets
$
—

 
$
—



The net change in the total valuation allowance for the period ended December 31, 2013 was an increase of $580 thousand. Federal and state net operating loss carryforwards were approximately $13.9 million and $7.3 million, respectively, as of December 31, 2013. The federal net operating loss carryforwards will expire at various times starting in 2026 through 2033, if not utilized.  The state net operating loss carryforwards will expire at various times starting in 2014 through 2033, if not utilized. Included in the Federal net operating loss carryforwards were approximately $3.5 million attributable to equity based compensation transactions. Approximately $1.0 million of the valuation allowance will be relieved through equity if these deductions for equity based transactions are realized.  Under Section 382 of the Internal Revenue Code, certain substantial changes in the Company’s ownership may limit the amount of net operating loss carryforwards that can be utilized in any one year to offset future taxable income. 

The tax years of 2010 through 2013 remain open to examination by major taxing jurisdictions to which the Company is subject. In addition, because the Company has net operating loss carryforwards for the years ended December 31, 2006, 2007 and 2009, the Internal Revenue Service and the state taxing authorities are permitted to audit those earlier years and propose adjustments up to the amount of net operating loss generated. The Company is currently not under examination by the Internal Revenue Service or any other jurisdiction for any tax years. At December 31, 2013, the Company does not have any uncertain tax positions, unrecognized tax benefits and did not recognize any interest or penalties.  The Company does not expect there to be a change in unrecognized tax benefits over the next twelve months.